IFRS UPDATE. Focused on IFRS 9, IFRS15 and other recent pronouncements

Transcription

1 IFRS UPDATE Fcused n IFRS 9, IFRS15 and ther recent prnuncements 8 th & 9 th May 2016

2 BIBF plays a vital rle in the training and develpment f human capital in the Middle East and Nrth Africa. Our cmmitment t excellence has strengthened ur psitin as the leading educatinal prvider acrss all majr business disciplines. We serve as a partner t numerus wrld-class institutins; delivering thught leadership, assessment and training in the areas f Banking, Islamic Finance, Executive Develpment, Accunting & Finance, Academic, Leadership & Management, Insurance, Infrmatin Technlgy and Cmmunicatin; resulting in a cmplete business slutin. In its first year f peratins, BIBF trained a ttal f 213 participants. By 1994, the number f participants increased up t 3,572 students. Fr the last six years, the averages ver 16,000 students per annum. Ttal N. f Registratin since 1981 = 260,000 + Cunting... 13% GCC As f Enrllments By Regin Acrss 34 Cuntries 2% 85% Bahrain 85% Bahrain 13% GCC 2% Others BIBF has a wide range f prgrammes and curses delivering thught leadership, research and advisry, assessment, and training acrss 34 different cuntries in the areas f: Academics Accunting & Finance Assessment & Develpment Banking English & Business Cmmunicatin Human Resurces Infrmatin Technlgy Insurance Interpersnal Skills Islamic Finance Leadership & Management Marketing, Sales and PR Prject Management

3 Why take this curse? The new standard, issued by Internatinal Accunting Standards Bard (IASB), IFRS 9 Financial Instruments, changes the way firms d accunting. This standard especially marks a big change fr banks & insurance cmpanies and it s financial reprting. IFRS Update TWO-DAY COURSE In terms f regulatry and financial reprting challenges bught abut by the significant updates t the IFRS s, this is specially a busy time fr Banks, Insurance cmpanies and ther institutins that are affected by these changes. This tw-day curse explres develpments in IFRS and hw they are likely t impact businesses with special fcus n IFRS 9 & 15. The develpments in accunting standards are likely t have a significant impact n the financial statements. Hwever, the impact f these changes ges beynd statutry reprting requirements. These changes may require mdificatins t underlying IT systems changing bth the systems and the data inputs, it als requires changes t the peratinal plicies that are needed t capture the data t generate the statutry financial infrmatin, in rder t cmplete the implementatin f the new requirements by the effective date. This tw-day curse prvides a cmprehensive verview f the develpments explring bth the theretical aspects and practical implantatin issues f recent, new and prpsed accunting standards. DAY 1 SESSION 1: INTRODUCTION ON THE RECENT CHANGES TO IFRS IMPACTING ON BANKS AND FINANCIAL INSTITUTIONS. Financial instruments Cnslidatin and special purpses entities Revenue recgnitin Leases Insurance accunting DAY 1 SESSION 2: FINANCIAL INSTRUMENTS: A REFRESHER OF IAS 32 AND IAS 39 Debt v equity and the requirements f IAS 32 Preference shares Cmpund instruments Definitins Financial assets Financial liabilities Equity Accunting fr financial assets and liabilities Held t maturity Originated lans and receivables Available fr sale Held fr trading

4 Accunting fr impairment Objective evidence f impairment Instruments measured at amrtised cst Instruments carried at fair value Hedge accunting Dcumentatin Risks Instruments Measuring effectiveness Fair value hedging Net investment in Freign Operatins DAY 1 SESSION 3: UNDERSTANDING IFRS 9 An explratin f the key requirements and differences frm existing treatments in respect f: Financial assets and liabilities: Recgnitin and de-recgnitin Measurement Capital resurces and capital requirements Impact n KPIs Where are yu in the jurney f implementing IFRS 9? New standard cmes int effect n st 1 January Have yu assessed the impact t yur business? Hedging: Objective and scpe Hedging instruments Hedged items Qualifying criteria Accunting requirements Hedging Grups f Items Optin t designate a credit expsure as measured at FVTPL Impact f the new hedging requirements Mre judgemental apprach Taking advantage f new pprtunities Applicatin f judgement New ptential hedging strategies Systems cnsideratins Extensive new disclsures Early adpt wait decisin Macr hedging

5 Impairment: A mve frm a reactive system f impairment t a frward lking practive system Recgnitin f expected credit lsses Measurement f expected credit lsses Impact f new impairment requirements Estimates f expected credit lsses Cntrl systems Expanded data requirements Disclsure requirements Interactin with regulated capital requirements Impact n KPIs DAY 2 SESSION 1: DEVELOPMENTS IN CONSOLIDATION IFRS 10: Cnslidatin A single mdel f cnslidatin based upn cntrl. Applicatin f substance ver frm Annual decisin t cnslidate Investment entity exemptin Special purpse entities IFRS 11 Jint Arrangements Fcusing n the underlying agreement, rather than the legal structure t determine accunting treatment Rights t the assets and bligatins fr liabilities Rights t the net assets Equity accunting Jint arrangement accunting IFRS 12: Disclsure f Relatinships T enhance disclsure f all relatinships f an entity, including thse cnslidated and nt cnslidated. Enhancing infrmatin Types f entities and relatinships impacted. The develpments in accunting standards are likely t have a significant impact n the financial statements. Hwever, the impact f these changes ges beynd statutry reprting requirements. Nature f disclsure

6 DAY 2 SESSION 2: FAIR VALUE MEASUREMENT IFRS 13: Fair Value Measurement A cmprehensive guidance t measuring fair value Level 1, level 2, level 3 Unit f accunt Principal and Mst Advantageus markets Exit and Entry Prices Disclsure and understanding risk DAY 2 SESSION 3: IFRS 15 REVENUE RECOGNITION An umbrella framewrk fr revenue recgnitin, based n 5 steps, drawing n existing best practice and cmbining existing treatments fr cnstructin cntracts and revenue recgnitin. Scpe f IFRS 15 Interactin between IFRS 9 and IFRS 15 Applicatin t banking prducts Review f the 5-part framewrk DAY 2 SESSION 4: LEASES Review f the mst recent expsure draft prpsing the capitalisatin f perating leases Assessing entity risk Cnceptual framewrk Business Analysis Banking Cvenants Key perfrmance Indicatrs Rental versus lease agreements IFRS 15 Revenue Recgnitin: Will yu be ready n time? Cmpliance deadline is appraching fast. Is yur data, systems and prcess in place t cmply with IFRS 15 frm 1 st January 2017? DAY2 SESSION 5: INSURANCE ACCOUNTING Expsure draft t enhance understanding f key drivers f perfrmance and standardise diverse treatments within the industry Prject backgrund Drivers f perfrmance Prpsed Disclsure Requirements Interactin between IFRS 9 and insurance accunting. DAY 2 SESSION 6: FINANCIAL STATEMENT PRESENTATION Financial statement presentatin issues Risk disclsures Capital disclsures Basel III requirements

7 Lincln Miles BA HONS, FCCA, FCMI, FCIS Cre expertise: IFRS, US GAAP, UK GAAP Financial Reprting Lincln is a financial reprting cnsultant and prfessinal trainer specialising in IFRS, US GAAP and UK GAAP. He has ver 15 years experience. Lincln prvides training and cnsultancy t listed and private cmpanies thrughut Eurpe with clients in the UK, Pland, Bulgaria, Czech Republic, Greece, Rmania and Channel Islands. Prir t establishing his cnsultancy business Lincln wrked fr BPP Prfessinal Educatin. He held the psitins f Managing Directr, Jersey; Natinal Authr ICAEW Advanced Stage Crprate Reprting and Audit, Directr BPP Suthamptn Lincln has been an examinatins marker fr bth ICAEW and ACCA. Lincln als wrked fr PWC as bth an external and internal auditr with bth cmmercial and public sectr clients. Lincln has been an Educatin Bard member f The Institute f Chartered Secretaries and Administratrs (ICSA) Accunting & Finance

8 IFRS CENTRE OF EXCELLENCE Fr mre infrmatin and Registratin Please cntact the Centre f Accunting & Finance : Tel: (+973) Ext: accunting@bibf.cm r aalbuqaishi@bibf.cm Leading Excellence in Accunting & Finance